With 42% institutional ownership, CTS Eventim AG & Co. KGaA (ETR:EVD) is a favorite amongst the big guns

Key Insights

• Institutions' substantial holdings in CTS Eventim KGaA implies that they have significant influence over the company's share price
• The top 5 shareholders own 52% of the company
• Insiders own 39% of CTS Eventim KGaA

If you want to know who really controls CTS Eventim AG & Co. KGaA (ETR:EVD), then you'll have to look at the makeup of its share registry. With 42% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of CTS Eventim KGaA, beginning with the chart below.

See our latest analysis for CTS Eventim KGaA

What Does The Institutional Ownership Tell Us About CTS Eventim KGaA?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

CTS Eventim KGaA already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CTS Eventim KGaA's historic earnings and revenue below, but keep in mind there's always more to the story.

CTS Eventim KGaA is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Klaus-Peter Schulenberg with 39% of shares outstanding. With 4.6% and 3.0% of the shares outstanding respectively, BlackRock, Inc. and Morgan Stanley, Investment Banking and Brokerage Investments are the second and third largest shareholders.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CTS Eventim KGaA

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of CTS Eventim AG & Co. KGaA. It has a market capitalization of just €6.8b, and insiders have €2.6b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in CTS Eventim KGaA. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CTS Eventim KGaA better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for CTS Eventim KGaA you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.